The ATO has finally released GST Ruling GSTR 2011/1. In effect it raises the spectre of the operator having to pay GST on the value of the DMF book at the time of sale of the village. So a $30 million DMF book would have a $3 million GST hit. The Not For Profits at present will be exempt but are concerned it will eventually flow to them too. The ATO has also hit tax input credits, meaning recalculation of GST on interest in particular in the development phase. For more information contact the Retirement Villages Association.
Government Policy
The three aged care bombshells from Senate Estimates
Last week’s Senate Estimates hearing – held just three weeks before sweeping reforms roll out – gave politicians the chance to ask Government heavyweights the questions they’re getting from constituents and to interrogate the once-in-a-generation changes.
